Q3 2023 Rumble Inc Earnings Call

Speaker 1: Ladies and gentlemen, greetings and welcome to the Rumble Inc. 3rd Quarter 2023 All Inks in Front

Ladies and gentlemen, greetings and welcome to the Rambus, Inc. Third quarter 2023 earnings Conference call.

Speaker 1: At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation.

At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.

Speaker 1: If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is a production of the National Institute of Technology, the

Anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded.

Speaker 1: It is now my pleasure to introduce your host, Shailen Devine, Investor Relations.

It is now my pleasure to introduce your host Shannon Devine Investor Relations. Please go ahead.

Speaker 2: Thank you, operator. I'm here today with Chris Pavlovski, founder, chairman, and CEO of Rumble, Brandon Alexanderoff, the CFO , and Tyler Hughes, the COO.

Thank you operator, I'm here today with Chris talked about a founder chairman and CEO of Grumble, Brandon Alexandra The CFO Howard Hughes the C O L. A press release detailing our third quarter 2023 result was released today and is available on the Investor Relations section of our company website before we begin the formal.

Speaker 2: A press release detailing our third quarter 2023 results was released today and is available on the investor relations section of our company website. Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates, or other information that might be considered forward-looking. Thank you for watching.

Presentation, I would like to remind everyone that statements made on the call and webcast may include predictions estimates or other information that might be considered forward looking all forward looking statements are made only as of the date of this webcast and should be considered in conjunction with the cautionary statements in our earnings release and the risk factors included.

And in our filings with the SEC future.

Future company updates will be available via press releases and company updates via the companies identified a social media channel I will now turn the call over to Rumble, founder Chairman and CEO, Chris Pawlowski correct.

Speaker 2: Future company updates will be available via press releases and company updates via the company's identified social media channels.

Speaker 2: I will now turn the call over to Rumbel's founder, chairman, and CEO , Chris Pavlosky. Correct.

Hello, and thank you for joining us today, the third quarter was strong for our business as we continue to deliver on our commitments to build our video and cloud platforms and get ready to scale monetization in 2024.

Speaker 3: Hello, and thank you for joining us today. The third quarter was strong for our business as we continue to deliver on our commitments to build our video and cloud platforms and get ready to scale monetization in 2024.

Speaker 3: First, I would like to highlight the cloud business, where we achieved our biggest milestone to date with the launch of the beta release of Rumble Cloud in September ahead of schedule.

First I would like to highlight the cloud business, where we achieved our biggest milestone to date with the launch of the beta release of Rumble cloud in September ahead of schedule.

Speaker 3: As we have stated in the past, building our own infrastructure for Rumble's video platform is existential for our business. We can never rely on Big Tech cloud providers for hosting.

As we have stated in the past building our own infrastructure for Rumbles video platform is substantial for our business. We can never rely on big Tech cloud providers for hosting.

Today with a full build out of the infrastructure to support Rumbled video we are in a position to sell our excess capacity into the market through Rumble cloud. The aim of Rumble cloud just to provide cloud solutions to the growing segment of businesses, who are disenfranchised with big Tech cloud providers due to unfair pricing strategies and <unk>.

Speaker 3: Today, with a full build-out of the infrastructure to support Rumble video, we are in position to sell our excess capacity to the market through Rumble Cloud. The aim of Rumble Cloud is to provide cloud solutions to the growing segment of businesses who are disenfranchised with big tech cloud providers due to unfair pricing strategies and increasingly restrictive terms and conditions.

Recently restricted terms and conditions.

Speaker 3: Since we launched in September with minimal promotion, the response has been extremely encouraging with qualified leads spread out over many markets, led by entertainment, e-commerce, gaming, education, and telecommunications.

Since we launched in September with minimal promotion. The response has been extremely encouraging with qualified leads spread out over many markets led by entertainment E Commerce gaming education, and telecommunications, we have already begun onboarding clients onto the platform.

Speaker 3: We have already begun onboarding clients onto the platform where we will refine our product and continue to ramp onboarding over the coming months. Our goal is to collect as much feedback in the beta stage as possible and launch fully in the first half of 2024.

Where we will refine our product and continue to ramp onboarding over the coming months. Our goal is to collect as much feedback in the beta stage as possible and launched fully in the first half of 2024.

Second I'd like to touch on the progress we've made to our video platform, where our vision is to build the most attractive economic tool kit for creators on the Internet.

Speaker 3: Second, I'd like to touch on the progress we've made to our video platform, where our vision is to build the most attractive economic toolkit for creators on the internet.

Speaker 3: I'm very excited to share the integration of our recent acquisition of Rumble Studio. Previously, Call-In, which closed in May, is now in beta.

I'm very excited to share the integration of our recent acquisition of Rumble studio previously Colin which closed in May is now in beta I believe this could be a game changer for Rumble and the creator community as a whole it has the potential to not only transformed a live streaming experience for our creators but.

Speaker 3: I believe this could be a game-changer for Rumble and the creator community as a whole. It has the potential to not only transform the live streaming experience for our creators, but also become a critical component of driving creator sponsorship revenue at scale.

Also become a critical component of driving greater sponsorship revenue at scale from a live streaming perspective Ramos studio will be the new cockpit for creators, where they will be able to seamlessly manage and customize their livestream production directly from the Rumble studio application control their distribution and ultimately provide a world class.

Speaker 3: From the live streaming perspective, Rumble Studio will be the new cockpit for creators, where they will be able to seamlessly manage and customize their live stream production directly from the Rumble Studio application, control their distribution, and ultimately provide a world-class interactive experience for their audience.

<unk> interactive experience for their audience.

Speaker 3: From the monetization perspective, Rumble Advertising Center will be directly integrated into Rumble Studio.

From a monetization perspective Rumble advertising center will be directly integrated into Rumble studio.

Speaker 3: Imagine having RAC present creator sponsorship offers in real time during streams and prior to going live on Rumble Studio. Creators being able to elect to do the sponsorship within their service.

Imagine having rack present crater sponsorship offers in real time during streams and prior to going live on Rumble studio creators being able to elect to do this sponsorship within their stream. This is what gets our team is really excited and why I believe it could be a real game changer. These sponsorship offers will not only.

Speaker 3: This is what gets our teams really excited, and why I believe it could be a real game

Speaker 3: These sponsorship offers will not only extend to the Rumble audience when going live, but since Rumble Studio will allow streaming to all platforms, our sponsorship marketplace can now extend into all live streaming platforms in all audiences, creating massive potential opportunity for this product.

Extends to the Rumble audience, when going live, but since Rumble studio will allow streaming to all platforms. Our sponsorship marketplace can now extend into all live streaming platforms in all audiences, creating massive potential opportunity for this product.

On our last earnings call, we mentioned that our creator sponsorships are currently facilitated by Emmanuel sales process Rumble studio integrated with rack will be the key for us to facilitate scaling this part of the business, enabling us to move from a small cohort of creators to potentially thousands of monetize craters overnight.

Speaker 3: On our last earnings call, we mentioned that our creator sponsorships are currently facilitated by a manual sales process. Rumble Studio, integrated with Rack, will be the key for us to facilitate scaling this part of the business, enabling us to move from a small cohort of creators to potentially thousands of monetized creators overnight.

Speaker 3: We expect Rumble Studio to very quickly add value to our business, both by greatly reducing the friction to livestream on Rumble, which will bring more creators to the platform, and also by accelerating scaling for sponsorship revenue in the future.

We expect Rumble studios to very quickly add value to our business both by greatly reducing the friction to livestream on Rumble, which will bring more creators to the platform and also by accelerating scaling for sponsorship revenue in the future.

Speaker 3: Looking back, over our first year as a public company, the capital raised in our public listing has enabled us to build out our content library and attract leading content creators, helping us successfully grow our diversified audience to 58 million monthly active users.

Looking back over our first year as a public company the capital raised in our public listing has enabled us to build out our content library and attract leading content creators, helping us successfully grow our diversified audience to 58 million monthly active users.

Speaker 3: Our content acquisition and diversification strategy has come at a calculated cost, but we believe our money has been well spent to date.

Our content acquisition and diversification strategy. The strategy has come at a calculated cost, but we believe our money has been well spent to date.

Speaker 3: In particular, our strategy should position us well to achieve our next goal relating to monetization initiatives, and that is attracting advertising agencies to our platform.

In particular, our strategy should position us well to achieve our next goal relating to monetization initiatives and that is attracting advertising agencies to our platform our momentum with advertising agencies, including top tier brand and political agencies stems largely from our relationships with sports leagues and the acquired talent.

Speaker 3: Our momentum with advertising agencies, including top-tier brand and political agencies, stems largely from our relationships with sports leagues and the acquired talent in this field. The investments we have made to date position us to leverage these relationships with very clear runway ahead. Today, Rumble reaches a great...

In this field the investments we have made to date position us to leverage these relationships with very clear runway ahead.

<unk> Rumble reaches a great variety of audiences and according to Comscore the industry standards for third party digital audience tracking political independence and those with no party affiliation are our largest segment Democrats second and Republicans third let me repeat that.

Speaker 3: And according to Comscore, the industry standard for third-party digital audience tracking

Speaker 3: Political independents and those with no party affiliation are our largest segment, Democrats second and Republicans third. Let me repeat that, independents and those with no party affiliation is our largest political audience.

And those with no party affiliation is our largest audience political audience segment. Its clear Rumble has entered a stage of diversification that caters to a diverse audience, allowing advertisers to reach desired audience segments on our platform importantly, the attraction of advertising agencies.

Speaker 3: It's clear Rumble has entered a stage of diversification that caters to a diverse audience.

Speaker 3: allowing advertisers to reach desired audience segments on our platform.

Speaker 3: Importantly, the attraction of advertising agencies allows us to slow down our spending without affecting our revenue potential.

Laos us to slow down our spending without affecting our revenue potential.

Speaker 3: If there is one takeaway from our third quarter, it is that Rumble is nearing the end of the building phase and is on schedule to scale monetization in 2024. We raised the necessary funds just over a year ago, have been diligent and strategic in our spending, and now have the creators and audience necessary to attract the attention of advertisers.

There is one takeaway from our third quarter is that Rumble is nearing the end of the building phase and is on schedule to scale monetization in 2024, we raised the necessary funds just over a year ago have been diligent and strategic in our spending and now have the creators and audience necessary to attract the attention of advertisers to date.

Speaker 3: To date, we've provided a small number of our creators with guaranteed minimum earnings because our advertising ecosystem did not match that of competing platforms.

We provided a small number of our creators with guaranteed minimum earnings because of our adverts because our advertising ecosystem did not match that of competing platforms.

Speaker 3: As our monetization engines, Rack and Rumble Studio, come online, creators will begin to see their earning opportunities significantly increase. This development enables us to pull back on our spending to acquire content while maintaining our creator and audience base. To crystallize this a bit further, by the end of 2024, we anticipate increased ad-driven monetization will allow us to attract new and retain existing creators with reduced reliance on guaranteed payments.

Monetization engines rack and Rumble studio come online creators will begin to see their earning opportunities significantly increase this development enables us to pull back on our spending to acquire content, while maintaining our creator and audience space to crystallize. This a bit further by the end of 2024, we <unk> we.

Anticipate increased AD driven monetization will allow us to attract new and retain existing creators with reduced reliance on guaranteed payments with the aforementioned in place we expect our guaranteed greater commitments to significantly decrease by the end of 2024, while our revenue engines come online movie.

Speaker 3: With the aforementioned in place, we expect our guaranteed creator commitments to significantly decrease by the end of 2024, while our revenue engines come online, moving us materially towards breakeven in 2025. The third quarter also proves that we have created a community for everyone. We have proven that Rumble is the preeminent neutral platform, and the opportunity that we provide has never been more attractive.

Us materially towards breakeven in 2025.

Third quarter also proves that we have created a community for everyone. We have proven that rumble as the preeminent neutral platform and the opportunity that we provide has never been more attractive with that I'll turn the call over to our CFO Brendan Alexandra.

Speaker 3: With that, I'll turn the call over to our CFO , Brandon Alexandrov.

Speaker 4: Thanks, Chris. I'll now take you through our Q3 financials at a very high level before turning the call over to the operator for Q&A. We reported revenues of $18 million for the quarter. This compares to $11 million for Q3 2022. The growth was primarily driven by a $2.3 million increase in advertising revenue and a $4.7 million increase in licensing and other revenue.

Thanks, Chris I'll now take you through our Q3 financials at a very high level before turning the call over to the operator for Q&A.

We reported revenues of $18 million for the quarter.

This compares to $11 million for Q3 2022, the growth was primarily driven by a $2 3 million increase in advertising revenue and a $4 7 million increase in licensing and other revenue the.

Speaker 4: The increase in advertising revenue was driven by an increase in consumption, as well as the introduction of new advertising solutions for creators, publishers, and advertisers, including host-read advertising and RAC, both of which we started to build and test in the second half of 2022.

The increase in advertising revenue was driven by an increase in consumption as well as the introduction of new advertising solutions for creators publishers and advertisers, including hosted advertising and rack both of which we start to build and test in the second half of 2022.

Speaker 4: While our revenue remains relatively small and subject to variability quarter over quarter, the progress made in attracting and retaining our audience, as well as the development of creator monetization tools, are proving out our overall business model and potential of the company.

While our revenue remains relatively small and subject to variability quarter over quarter, the progress made in attracting and retaining our audience as well as the development of greater monetization tools are proving out our overall business model and potential of the company.

Speaker 4: Our cost of services include all programming and content costs related to payments to content providers, including amounts paid to creators based on revenues generated, as well as additional costs related to incentivizing top creators to promote and join our platform.

Our cost of services include all programming and content costs related to payments to content providers, including amounts paid to creators based on revenues generated as well as additional costs related to incentivising top creators to promote and join our platform.

Speaker 4: Cost of services also includes third-party service provider costs, such as data center and networking, staffing costs directly related to professional service fees, and costs paid to publishers.

Cost of service was also includes third party service provider cost such as data center and networking staffing costs directly related to professional service fees and cost paid to publishers.

Speaker 4: Cost of services for the quarter were $39.8 million compared to $12.3 million in Q3 a year ago. The increase was due to an increase in programming and content costs of $26.1 million, hosting expenses of $700,000, and other service costs of $700,000.

Cost of services for the quarter were $39 8 million compared to $12 3 million in Q3, a year ago. The increase was due to an increase in programming and content costs of $26 1 million hosting expenses of 700000 and other service costs of 700000.

Speaker 4: Moving to our cash position, we ended the quarter with approximately $267 million in cash, cash equivalents, and marketable securities compared to $338.3 million as of December 31st, 2022.

Moving to our cash position, we ended the quarter with approximately $267 million in cash cash equivalents and marketable securities compared to $338 3 million as of December 31, 2022.

Speaker 4: To date, as intended, a large portion of our cash used has been to acquire content by providing economic incentives, including minimum guaranteed earnings, to a limited number of content creators, including sports leagues, which we have not yet begun to monetize meaningfully. This content acquisition strategy has allowed us to enter key content verticals and secure top content creators in those verticals before we have full monetization capabilities in place.

To date as intended a large portion of our cash use has been to acquire content by providing economic incentives, including a minimum guaranteed earnings to a limited number of content creators, including sports leagues, which we have not yet begun to monitor monetize meaningfully. This content acquisition strategy has allowed us to enter key content verticals.

<unk> and secure top content creators in those verticals before we have full monetization capabilities in place.

Speaker 4: And as Chris mentioned, we anticipate increased ad-driven monetization will allow us to attract new and retain existing creators with reduced reliance on guaranteed payments. As a result, we expect our guaranteed creator commitments to significantly decrease by the end of 2024 while our revenue engines come online, moving us materially towards breakeven in 2025.

And as Chris mentioned, we anticipate increased AD driven monetization will allow us to attract new and retain existing creators with reduced reliance on guaranteed payments as a result, we expect our guaranteed creator commitments to significantly decrease by the end of 2024, while our revenue engines come online moving us materially towards breakeven.

In 2025.

Speaker 4: That concludes my prepared remarks. Before I turn the call over to the operator, I invite you all to join Chris this evening at 7 p.m. Eastern time in an exclusive post-earnings interview with Matt Kors to be streamed live on the Matt Kors Rumble channel. I will now turn the call over to the operator to open up the line for questions from our covering analysts.

That concludes my prepared remarks before I turn the call over to the operator I invite you all to join Chris. This evening at seven P. M. Eastern time in an exclusive post earnings interview with Mac cores to be streamed live on the Mac quarters Rumbled channel I will now turn the call over to the operator to open up the line for questions from our covering analysts.

Speaker 1: Thank you. Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star and 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Thank you.

Ladies and gentlemen, we will now be conducting a question answer session.

I would like to ask a question. Please press star and one on your telephone keypad.

A confirmation tone will indicate your line is in the question queue.

You May press Star and two if you would like to remove your question from the queue.

Speaker 1: You may press star and 2 if you would like to remove your question from

Speaker 1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start.

All participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker 1: Ladies and gentlemen, we will wait for a moment while we poll for questions.

Ladies and gentlemen, we will wait for a moment, while we poll for questions.

Our first question comes from Tom Forte with D. A Davidson. Please go ahead.

Speaker 1: Our first question comes from Tom Forte with DA Davidson, please go ahead.

Great. Thanks, So I had several questions I wanted to ask two and then get back in the queue and then ask the remainder.

Speaker 5: Great, thanks. So I had several questions. I wanted to ask two and then get back in the queue and then ask the remainder. So first off, can you provide your current thoughts on your ability to track influencers from other platforms, including Twitch? It looks like news came out today that Amazon had more layoffs in their gaming space, only this time it was not Twitch.

First off can you provide your current thoughts on your ability to attract influencers from other platforms, including Twitch it.

It looks like news came out today that Amazon had more layoffs in the gaming space only this time it was not twitch.

Typically it.

That's my first question.

Yes, so we've had.

Speaker 3: Yes, so we've had a lot of success with attracting creators from Twitch as of, I would say, earlier Q2 of this year, and we believe that momentum should be able to continue going into next year as these other platforms have exorbitant fees.

A lot of success with attracting creators from Twitch.

I'd say earlier Q2 of this year and we believe that momentum should should be able to continue going into next year as these other platforms that exorbitant fees with.

Speaker 3: with craters. So for example, I believe the red shares

With greater so for example, I believe the Rev shares on.

Speaker 3: on Twitch are very high in favor of Twitch, whereas a platform like Rumble is offering much more compelling rev shares, which should help attract that creator base over to our platform.

On Twitch or are very high.

In favor of Twitch, whereas a platform like Rumble is offering much more compelling Rev shares, which should help attract.

That creator base over to our platform.

Speaker 5: Great. And then for my second question, and I'll get back in the queue. It looks like you've been the exclusive live streamer for numerous Republican presidential debates with more coming up. Have these been needle movers as far as engagement goes?

Great and then for my second question and I'll get back in the queue. It looks like you've been the exclusive live stream or for numerous Republican presidential debates with more kind of like coming up have these been needle movers as far as engagement goes.

Absolutely.

Speaker 3: Absolutely. When it comes to the RNC, the Republican primary debates, the first debate in particular that I can remember had over 700, across the platform at a single point in time with the GOP being the largest stream, we had over 700,000 concurrent streamers, watchers,

When it when it comes to the.

The RMC the Republican primary debates the first debate in particular that I can remember had over 700 across the platform at a single point in time with the GOP being the largest stream we had over 700000 concurrent streamers watchers.

Speaker 3: on the platform according to stream charts, and I believe the GOP was the number one stream in the United States at the time that it happened.

On the platform. According the stream charts and I believe the GOP was the number one stream in the United States at the time that it happened.

Speaker 6: So we've seen some huge success on the debates and pushing our platform as well to really high, to very high marks.

So we've seen some huge success on the on the debate and.

Pushing our platform as well too to really high.

Very high marks.

Great I'll get back in the queue for more questions.

Thank you.

Speaker 7: Our next question comes from the line of Jason Helstein with Oppenheimer and Company. Please go ahead. Thanks. I'll ask a few. But first, I want to say, John , I watched the recent GOP debate.

Our next question comes from the line of Jason <unk> with Oppenheimer and company. Please go ahead.

So I'll ask a few but first of all I think I watched the recent GOP.

Based on my phone on cellular on your App.

It was well done so so kudos for that.

Speaker 7: So, I guess we have a lot of stuff to unpack, so I'll ask a few.

So I guess, we have a lot of stuff to unpack lost a few and then we'll keep taking turns so.

Speaker 7: So USMAU was up nicely quarter to quarter, but minutes, kind of for you.

U S M a.

Nicely quarter to quarter, but minutes per user were down.

Speaker 7: I don't know if there's any general thoughts behind that.

Any general thoughts behind that.

Probably like mix of content in the corner. So that's question one so I'll just go one at a time.

Speaker 7: content in the quarter, so that's question one. So I'll just go.

Yeah, so when it comes to the engagement metric.

Speaker 3: Yeah, so when it comes to the engagement metric, there's a couple things there. First off is the

There is a couple of things there first off is the is that we have in the summer. When for example, we had the GOP debate in the middle of the summer a lot of creators not not only in the summer or taking time off so youre seeing a lot of like for example, Steven Crowder is not doing his stream all in July and these <unk>.

Speaker 3: is that we have, in the summer, for example, we had the GOP debate in the middle of the summer. A lot of creators, not only in the summer, are taking time off. So you're seeing a lot of, for example, Steven Crowder is not doing his stream all in July , and these long streams obviously add to a lot of the watch time. Not him particularly, but a lot of different creators that don't create content over the summer. We also have moved our, we're slowly moving over our CDN onto our own CDN, and from preliminary results that we're seeing is that our CDN is recording, it seems to have, be recording less bandwidth.

Long streams, obviously add to a lot of the watch time, not him, particularly but a lot of different craters that don't create content over the summer. We also have moved.

But we're slowly moving over our CDN onto our own CDN and from preliminary results that we're seeing is that our CDN is recording it seems to have.

Be recording less bandwidth than third party CDN.

Speaker 7: than the third-party CDNs that we used. Got it. So maybe MAU will be a better indicator than NMINUTE, at least from a training standpoint.

We used.

Got it so maybe you'll be a better indicator than 10 minutes.

From a training standpoint.

And then on AD monetization.

I mean in Iraq behind schedule I mean, given.

Given the you know the Mou being up sequentially. It was a little surprising to see you know kind of particularly like the U S revenue or just the advertising revenue kind of down sequentially. So I.

Speaker 7: revenue or just the advertising revenue kind of down sequentially.

Speaker 7: I mean, maybe just like unpack that, I mean, sales and marketing was down, so was there like less manual selling effort maybe ahead of RAC, just kind of why was revenue down sequentially? Because I just...

I mean, maybe just unpack that I mean sales and marketing was down or was there a lot less manual selling ever maybe ahead of ratchet kind of why why was revenue down sequentially.

Usually third quarter.

Seasonally smaller.

Smaller quarters in second quarter, and only one yes, no absolutely. So when it comes to revenue what we said in the second quarter is that.

Speaker 3: Yeah, no, absolutely. So, when it comes to revenue, what we said in the second quarter is that a lot of our revenue stems from the testing that we've done with a small cohort of creators on the sponsorship side, and we haven't, at this point, fully scaled RAC on the programmatic side. So, there's two sides to the business at Rumble when it comes to the advertising. One is the sponsorship RAC sponsorships, and the other one's going to be RAC programmatic.

A lot of our revenue stems from the testing that we've done with the cohort a small cohort of creators on on the sponsorship side and we haven't at this point fully scaled rack on the on the programmatic side. So there's two sides of the business that Rumble when it comes to the advertising one is the sponsorship racks.

<unk> shifts and the other one is going to be rack programmatic.

Speaker 3: And right now, we're on schedule to be launching programmatic within our app this quarter, hopefully in a few weeks to like two to four weeks time. And that will be a big moment for us when we start introducing pre-rolls within app and should have an effect on revenue going into 2024.

And right now we're on schedule to be launching programmatic within our App. This quarter hopefully in a few weeks to it like two to four weeks time and that will be a big moment for us when we start introducing payrolls within app and should have an effect on revenue going into 2024.

And then the second component is because we're only testing a small cohort of creators on the sponsorship side, we need to integrate that into Rumble studio and rack and deliver that early in 2024. So that people can get those sponsorships on scale with while theyre going live on streaming so I wouldn't say rack is behind in fact I think we're.

We're.

Speaker 7: making history in the sense that we're building these tools in the last year that companies like Google bought DoubleClick for billions of dollars and built out their tools over a decade. We're trying to compress that all in the last 365 days. So I think we're doing extremely well on that. Having Rack where it is right now and being ready to introduce pre-rolls for 2024 in our apps and OTT is a big milestone for us and we're on target to be doing that. And then as we introduce Rack into Rumble Studio, which just came out into beta in the last couple of weeks, we still have to build the sponsorship part into the studio. I think we're doing quite well on building that out. So just to follow up and not to put words in your mouth, so was basically the sequential decline in advertising revenue more a function of that you had advertisers who tested the platform in the second quarter but did not come in in the third quarter or like just for you kind of shifting resources ahead of Rack and Rumble Studio launch.

Making history in the sense that we're building these tools in the last year that companies like Google took they bought doubleclick for billions of dollars and built out their tools over like a decade, we're trying to compress at all in the last 365 days. So I think we're doing extremely well on.

That having rack, where it is right now and being ready to introduce for your <unk> for 2024 is in our apps in OTT is a big milestone for us and we're on target to be doing that and then as we introduce <unk> into Rumble studio, which just came out.

The data in the last couple of weeks, we still have to build the sponsorship or into the studio.

I think we're doing quite well on building that out.

So just a follow up and not to put words in your mouth. So was basically the sequential decline in advertising revenue more a function of that you had in the.

Speaker 7: just a follow-up and not to put words in your mouth.

Speaker 7: Basically, the sequential decline in advertising revenue were a function of that you had advertisers who tested the platform.

Advertisers are attached to the platform in the second quarter, but did not come in in the third quarter or like just for you shifting resources ahead of rack and Rumble Rumble studio launch.

Speaker 7: I'll come in in the third quarter or like just for you kind of shifting resources.

Speaker 7: Yeah, I don't think it's an advertiser thing. I think it's more of a cohort of creators. If we have a small cohort of creators that we're monetizing very well, and they're taking vacation during the summer, that's gonna have an impact in addition to the fact that we are really trying to get RAC and the sponsorships and RAC and the studio and all that, all our focus is there as well. It's a combination of a few things, and those are at least two things that really contribute to it. And then the last one, I'll jump back in the queue. So gross margin loss was...

Yes, I don't think it was a it's the it's an.

<unk> thing I think it's more of a cohort of traders. If we have a small quarter craters that we're monetizing very well and they're taking vacation during the summer that's going to have an impact. In addition to the fact that we are really trying to get rack in the sponsorships and rack in the studio and all of that all our focus is there as well. It's a combination of a few things and those are those are at least two things there.

Contribute to it.

And then last one and I'll jump back in the queue. So gross margin loss.

A lot worse than it's been getting worse right.

Third quarter.

Incrementally worse gross margin loss.

Speaker 7: I mean, obviously, there's the revenue impact, but was there also kind of a mix on content? You know, just the...

I mean, obviously there is a revenue impact but was there also kind of mix on content.

Just the way.

Licensing.

Lee I think has a low I mean.

Speaker 7: I mean, mix between revenue, licensing versus advertising or other content, maybe, to help us unpack why the growth.

Mixed between revenue licensing versus advertising or other content, maybe just help us unpack wide growth.

Gross margin loss from a ratio standpoint.

Just kind of so much worse from the second quarter.

Speaker 4: Yeah. Hey, Jason, it's Brandon. So, cost of services, I think, was a little down, relatively flat, to the prior quarter. And the biggest chunk of cost of services is the greater incentive costs, right, which are the commitments that we've made and the minimum guarantees that we've been talking about, which will be coming off, as we said, at the end of 2024. That's when they'll be meaningfully coming down.

Yeah, Hey, Jason it's Brandon so cost of services I think was a little guy in relatively flat for the prior quarter and the biggest chunk of cost of services is be greater incentive costs right, which are the commitments that we've made on the minimum guarantees that we've been talking about which will be coming off as we said at the end of at the end of 2024, that's when they'll be meaningfully coming down.

Speaker 4: So they'll continue to be in there for the next few quarters, and then that's when they start coming off. So that's just part of the business plan with respect to the commitments on the content acquisition strategy.

So we will continue to be in there.

For the next few quarters and then that's when they start coming off so that's.

That's just part of the business plan with respect to the commitments on the on the content acquisition strategy.

Thanks, I'll jump back thank you.

Thank you.

Speaker 1: Thank you. Our next question is from Tom Forte with DA Davidson. Please go ahead.

Next question is from Tom Forte with D. A Davidson. Please go ahead.

Great. So three follow ups for me and then I'll stop.

Speaker 5: Great. So, three follow-ups for me, and then I'll stop. So, one at a time, can you discuss what artificial intelligence means to Rumble and to what extent you're able to use the technology to enhance content moderation on the platform?

So one at a time.

Can you discuss what artificial intelligence means to rumble and to what extent, you're able to use the technology to enhance content moderation sorry moderation on the platform.

Yes, thanks, Tom So when it comes to AI and moderation, we've opted to stay away from that entirely.

Speaker 6: Yes. Thanks, Tom. So, when it comes to AI and moderation, we've opted to stay away from that entirely. I think those are the mistakes that the larger platforms have done, is relied on a lot of technology to flag and remove content, whereas we want to be a little bit more particular about that and have real human eyes on something and not rely on something that hasn't proved out to be 100%.

I think those are the mistakes that the larger platforms have done has relied on a lot of technology to flag and remove content.

As we want to be a little bit more particular about that and have real human eyes on something and not rely on something that isn't hasn't hasnt proved out to be.

100%.

Speaker 3: So, when it comes to AI and the moderation side, we haven't implemented anything of that sort and we have no current plans to implement anything of that sort.

Accurate so when it comes to AI and the moderation side, we haven't implemented anything of that sort and we have no current plans to implement anything of that sort.

Speaker 5: All right, and then second, this is very philosophical, but I like to get philosophical with you, Chris. All right, so on AI, it seems to me there's a real risk that given the parties involved, advancement in AI is going to increase the excess influence on consumers from Big Tech, Amazon, Apple, Google, MetaPlatforms, Microsoft. So I'd appreciate your thoughts on that as a long-term participant. And then also, what can you do, if anything, to disrupt that?

Alright, and then second this is great philosophical, but I like to get philosophical view, Chris Alright.

Seems to me, there's a real risk that given the parties involved advancement in AI is going to increase the excess influence on consumers from Big Tech Amazon Apple Google meta platforms Microsoft.

Hum.

I'd appreciate your thoughts on that as long term participant and then also what can you do if anything to disrupt that.

Okay.

Yeah.

Yes, so at this point.

When looking at AI and articles official intelligence on the Rumble side the.

Speaker 3: When looking at AI and artificial intelligence on the Rumble side, obviously video is a massive contributor to AI models. It's not something that we're doing and it's not something that we're in. Additionally,

Obviously video is a massive contributor to AI models, it's not something that we're doing and it's not something that we're in.

Additionally.

There.

I think the first step for Rumble when it comes to any sort of machine learning or any sort of recommendations will be in terms of like making sure that we deliver content that people want.

Speaker 3: I think a first step for Rumble when it comes to any sort of machine learning or any sort of recommendations will be in terms of like making sure that we deliver content that people want after a video is done. We're not going to be adopting a new feed based on AI, not anytime soon, and for a lot of various reasons.

Video is done we're not going to be adopting a new feed based on AI not anytime soon.

For a lot of various reasons, but when it comes to surfacing content and helping drive launch time I think there is things that we could do on the on the recommendation side, but I want to be very careful on how we do that and what we do just based on what we currently see in what our audience really want so I want to make sure we deliver what they want.

Speaker 3: but when it comes to surfacing content and helping drive watch time.

Speaker 3: I think there's things that we could do on the recommendation side, but I want to be very careful on how we do that and what we do just based on what we currently see and what our audience really wants. I want to make sure we deliver what they want.

More than the.

Speaker 3: more than what other companies are doing.

Other companies are doing.

Excellent last question. Thanks for taking all my questions. So can you give your current thoughts on the regulatory efforts across the globe. When it comes to the Internet broadly in free speech more specifically, including those in Canada.

Speaker 5: Excellent. Last question. Thanks for taking all my questions. So can you give your current thoughts on the regulatory efforts across the globe when it comes to internet broadly and free speech more specifically, including those in Canada?

Yeah.

Yes.

Speaker 3: Yeah, so when it comes to, obviously, in the United States, there, the First Amendment is, is the most important is, is there. So it's, it's critically important to us. And obviously, you know, puts a really big safeguard.

So when it comes to obviously in the United States. The first amendment.

As the most important.

Is there so it's critically important to us and obviously.

Puts a really big safeguard for what we do when it comes to other jurisdictions, like France, or China or North Korea.

Speaker 3: for what we do. When it comes to other jurisdictions like France, or China, or North Korea, it's obviously murky. Those aren't markets that we're participating in. And when it comes to Canada, obviously, we're hoping that things will change.

It's it's obviously mercury those are markets that we're participating in it and when it comes to Canada, obviously, we're hoping that things will change.

Speaker 3: In Canada, we're not really sure on how the laws in Canada will play out, so it's still a wait-and-see moment for us in terms of how they will enforce and what they plan to enforce and what they plan to do. It's a very early stage in Canada and with many other markets.

In Canada, we're not really sure on how the laws in Canada will play out so it's still a wait and see moment for us in terms of how they they will enforce and what they plan to enforce and what they plan to do it is very early stage.

And Canada along with.

Many other markets.

Speaker 3: But when it comes to the U.S., that's kind of where our bread and butter is at this moment. And we've challenged things, like in the New York State, when they tried to push back on the First Amendment. And we've been very successful there in overturning that, and obviously now it's an appeal. And we'll continue to push forward on that in the United States, alongside the First Amendment.

But when it comes to the U S.

Kind of where our bread and butter is at this moment and we've challenged things in like in the New York State when they try to push back on the first amendment and we have successfully we've been very successful there.

And overturning that and obviously now it's an appeal.

And we will continue to it will continue to.

Push forward on that in the United States alongside the first amendment.

Great. Thanks, Chris there's no more questions.

Thank you.

Speaker 1: Our next question is from the line of Jason Helstein with Oppenheimer and Company. Please go ahead. Hi.

Our next question is from the line of Jason <unk> with Oppenheimer and company. Please go ahead.

So just a few more so can you just talk about.

Speaker 7: So, can you talk about what drove, I think...

What drove it.

Thanks.

No I'm good on that question. Okay. So the next question how should we think about Rahmbo cloud impact on either gross profit or EBITDA over the next 12 months.

Speaker 7: So the next question, how should we think about rumble cloud impact on either gross profit or even over the next 12 months? I mean, just like broadly, I mean, is this entirely just selling

Broadly yes.

Is this entirely just selling excess capacity are they going to be additional costs.

But.

So we like accretive from a financial standpoint.

That one and then I'll just do one more after that.

Hi, Yes, we're not providing any guidance on the on cloud at this point.

Speaker 3: Yeah, we're not providing any guidance on the on cloud at this point.

Okay.

Speaker 7: Okay, and your comment about Ibadabri.

And then your comment about EBITDA breakeven and 25 is that for the full year of 25 or just like at a point in 'twenty five like a quota right just to clarify so we haven't define what we mean by breakeven at this time.

Speaker 7: 25 is that for the full year of 25 or just like at a point?

Speaker 4: Just to clarify, so we haven't defined what we mean by break even at this time. It's a, you know, there's disclosure requirements around that surrounding non gap metrics. And so, you know, we'll develop the appropriate set of metrics around this and communicate that during 2024. But at this time, we haven't defined it, nor are we giving guidance on the timing of that specifically.

There is disclosure requirements around that surround them with non-GAAP metrics and so.

We will develop.

The appropriate set of metrics around this and communicate that during 2024.

At this time, we haven't defined it nor are we giving guidance on the timing of that specifically.

So what was that comment though.

Specifically he said our goal is to be breakeven in 'twenty five so.

Speaker 7: No, I think we said we're heading towards breakeven in 2025. As these expenses that I was mentioning earlier, as these creator commitment expenses start coming off and revenue starts to scale, that's when we start heading towards the breakeven timeframe, which we expect to happen in 2025. So, basically, you mean...

No I think we said we're headed we're heading towards breakeven in 2025 as these expenses that I was mentioning earlier as these greater commitment of expenses start coming off and revenue starts to scale, that's when we start having towards breakeven.

Nine frame, which we expect to happen in 2025.

Basically you're trying to say that.

We will see an improvement.

Speaker 7: in 2025 like as a marginal level.

In 2025.

As a marginal level, but there is no commitment absolute levels at this point.

Yeah.

Speaker 4: We expect we will be breakeven. We'll communicate more about what that means in 2024.

We expect we will be breakeven will communicate more about what that means in 2024.

Okay. That's it for me thank you.

Thank you.

Speaker 1: As there are no further questions at this time, the conference of Rumble, Inc. has now concluded. Thank you for your participation. You may now disconnect your lines.

As there are no further questions at this time the conference call for <unk>, Inc. Has now concluded. Thank you for your participation you may now disconnect your lines.

Okay.

[music].

Yes.

Yes.

[music].

[music].

Speaker 8: The.

[music].

Ladies and gentlemen, greetings and welcome to the Rambus, Inc. Third quarter 2023 earnings Conference call.

Speaker 1: Ladies and gentlemen, greetings and welcome to the Rumble Inc. 3rd Quarter 2023 Earnings Conference Call.

Speaker 1: At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.

At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.

Speaker 1: If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded.

Speaker 1: It is now my pleasure to introduce your host, Shannon Divine, Investor Relations. Please go ahead.

It is now my pleasure to introduce your host Shannon Devine Investor Relations. Please go ahead.

Thank you operator, I'm here today with Chris Paul Biopsy, founder Chairman and CEO Rumble, Brandon Alexandra off the CFO Howard Hughes the C O L. A.

Speaker 2: Thank you, Operator. I'm here today with Chris Pawlowski, Founder, Chairman, and CEO of Rumble, Brandon Alexandrov, the CFO , and Tyler Hughes, the COO.

Speaker 2: A press release detailing our third quarter 2023 results was released today and is available on the investor relations section of our company website. Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates, or other information that might be considered forward-looking. Thank you for your time.

Press release detailing our third quarter 2023 results was released today and is available on the Investor Relations section of our company website before we begin the formal presentation I would like to remind everyone that statements made on the call and webcast may include predictions.

Threat or other information that might be considered forward looking all forward looking statements are made only as of the date of this webcast and should be considered in conjunction with the cautionary statements in our earnings release and the risk factors included in our filings with the SEC.

Speaker 2: All forward-looking statements are made only as of the date of this webcast and should be considered in conjunction with the cautionary statements in our earnings release and the risk factors included in our filing for the SEC.

Speaker 2: Future company updates will be available via press releases and company updates via the company's identified social media channels.

Future company updates will be available via press releases and company updates via the company's identified the social media channels.

Speaker 2: I will now turn the call over to Rumble's founder, chairman, and CEO , Chris Pawlowski.

I will now I'll turn the call over to Rumble, founder Chairman and CEO, Chris Pawlowski correct.

Speaker 6: Hello, and thank you for joining us today. The third quarter was strong for our business as we continue to deliver on our commitments to build our video and cloud platforms and get ready to scale monetization in 2024.

Hello, and thank you for joining us today, the third quarter was strong for our business as we continue to deliver on our commitments to build our video and cloud platforms and get ready to scale monetization in 2024.

Speaker 6: First, I would like to highlight the cloud business where we achieved our biggest milestone to date with the launch of the beta release of RumbleCloud in September ahead of schedule.

First I would like to highlight the cloud business, where we achieved our biggest milestone to date with the launch of the beta release of Rumble cloud in September ahead of schedule.

Speaker 6: As we have stated in the past, building our own infrastructure for Rumble's video platform is existential for our business. We can never rely on big tech cloud providers for hosting.

As we have stated in the past building our own infrastructure. So rumbles video platform is substantial for our business. We can never rely on big Tech cloud providers for hosting.

Speaker 6: Today, with a full build-out of the infrastructure to support Rumble video, we are in position to sell our excess capacity to the market through Rumble Cloud. The aim of Rumble Cloud is to provide cloud solutions to the growing segment of businesses who are disenfranchised with big tech cloud providers due to unfair pricing strategies and increasingly restrictive terms and conditions.

Today with a full build out of the infrastructure to support Rumble video, we are in position to sell our excess capacity to the market through Rumble cloud.

Aim of Rumble cloud is to provide cloud solutions to the growing segment of businesses, who are disenfranchised with big Tech cloud providers due to unfair pricing strategies and increasingly restrictive terms and conditions. Since we launched in September with minimal promotion. The response has been extremely encouraging with qualified leads.

Speaker 6: Since we launched in September with minimal promotion, the response has been extremely encouraging with qualified leads spread out over many markets, led by entertainment, e-commerce, gaming, education, and telecommunications.

Spread out over many markets led by Entertainment E Commerce gaming education and telecommunications.

Speaker 6: We have already begun onboarding clients onto the platform, where we will refine our product and continue to ramp onboarding over the coming months. Our goal is to collect as much feedback in the beta stage as possible and launch fully in the first half of 2024.

We have already begun onboarding clients onto the platform.

We will refine our product and continue to ramp onboarding over the coming months. Our goal is to collect as much feedback in the beta stage as possible and launched fully in the first half of 2024.

Speaker 6: Second, I'd like to touch on the progress we've made to our video platform, where our vision is to build the most attractive economic toolkit for creators on the internet.

Second I'd like to touch on the progress we've made to our video platform.

Our vision is to build the most attractive economic tool kit for creators on the Internet.

Speaker 6: I'm very excited to share the integration of our recent acquisition of RumbleStudio. Previously, Call-In, which closed in May, is now in beta.

I'm very excited to share the integration of our recent acquisition of Rumble studio previously colon, which closed in May is now in beta.

Speaker 6: I believe this could be a game-changer for Rumble and the creator community as a whole. It has the potential to not only transform the live streaming experience for our creators, but also become a critical component of driving creator sponsorship revenue at scale.

I believe this could be a game changer for Rumble and the creator community as a whole it has the potential to not only transformed a live streaming experience for our creators, but also become a critical component of driving crater sponsorship revenue at scale.

Speaker 6: From the live streaming perspective, Rumble Studio will be the new cockpit for creators, where they will be able to seamlessly manage and customize their live stream production directly from the Rumble Studio application, control their distribution, and ultimately provide a world-class interactive experience for their audience.

From the live streaming perspective Rumble studio will be the new cockpit for creators, where they will be able to seamlessly manage and customize their livestream production directly from the Rumble studio application control their distribution and ultimately provide a world class interactive experience for their audience.

Speaker 6: From the monetization perspective, Rumble Advertising Center will be directly integrated into Rumble Studio.

From a monetization perspective Rumble advertising center will be directly integrated into Rumble studio.

Speaker 6: Imagine having RAC present Creator Sponsorship offers in real-time during streams and prior to going live on Rumble Studio, Creators being able to elect to do the Sponsorship within their streams.

Imagine having rack present creator sponsorship offers in real time during streams and prior to going live on Rumble studio creators being able to elect to do this sponsorship within their stream. This is what gets our team is really excited and why I believe it could be a real game changer. These sponsorship offers will.

Speaker 6: This is what gets our teams really excited and why I believe it could be a real game

Speaker 6: These sponsorship offers will not only extend to the Rumble audience when going live, but since RumbleStudio will allow streaming to all platforms, our sponsorship marketplace can now extend into all live streaming platforms and all audiences, creating massive potential opportunity for this product.

Not only extends to the rumble audience, when going live but since Robert studio will allow streaming to all platforms. Our sponsorship marketplace can now extend into all live streaming platforms in all audiences, creating massive potential opportunity for this product.

Speaker 6: On our last earnings call, we mentioned that our creator sponsorships are currently facilitated by a manual sales process. Rumble Studio, integrated with Rack, will be the key for us to facilitate scaling this part of the business, enabling us to move from a small cohort of creators to potentially thousands of monetized creators overnight.

On our last earnings call, we mentioned that our creator sponsorships are currently facilitated by Emmanuel sales process Rumble studio integrated with rack will be the key for us to facilitate scaling this part of the business, enabling us to move from a small cohort of creators to potentially thousands of monetize craters overnight.

Speaker 6: We expect RumbleStudio to very quickly add value to our business, both by greatly reducing the friction to livestream on Rumble, which will bring more creators to the platform, and also by accelerating scaling for sponsorship revenue in the future.

We expect Rumble studio to very quickly add value to our business both by greatly reducing the friction to livestream on Rumble, which will bring more creators to the platform and also by accelerating scaling for sponsorship revenue in the future.

Speaker 6: Looking back over our first year as a public company, the capital raised in our public listing has enabled us to build out our content library and attract leading content creators, helping us successfully grow our diversified audience to 58 million monthly active users.

Looking back over our first year as a public company the capital raised in our public listing has enabled us to build out our content library and attract leading content creators, helping us successfully grow our diversified audience to 58 million monthly active users our content acquisition and diversification strategy the strategy has come.

Speaker 6: Our content acquisition and diversification strategy has come at a calculated cost, but we believe our money has been well spent to date.

At a calculated cost, but we believe our money has been well spent to date.

Speaker 6: In particular, our strategy should position us well to achieve our next goal relating to monetization initiatives, and that is attracting advertising agencies to our platform.

In particular, our strategy should position us well to achieve our next goal relating to monetization initiatives and that is attracting advertising agencies to our platform.

Speaker 6: Our momentum with advertising agencies, including top-tier brand and political agencies, stems largely from our relationships with sports leagues and the acquired talent in this field. The investments we have made to date position us to leverage these relationships with a very clear runway ahead. Today, Rumble reaches a great...

Our momentum with advertising agencies, including top tier brand and political agencies stems largely from our relationships with sports leagues and the acquired talent in this field. The investments we have made to date position us to leverage these relationships with very clear runway ahead.

Dave Rumble reaches a great variety of audiences and according to Comscore the industry standard for third party digital audience tracking political independence and those with no party affiliation our largest segment Democrat second and Republicans third let me repeat that.

Speaker 6: And according to Comscore, the industry standard for third-party digital audience tracking

Speaker 6: Political independents and those with no party affiliation are our largest segment, Democrats second and Republicans third. Let me repeat that, independents and those with no party affiliation is our largest audience, political audience.

And those with no party affiliation is our largest audience political audience segment. Its clear rubble has entered a stage of diversification that caters to a diverse audience, allowing advertisers to reach desired audience segments on our platform importantly, the attraction of advertising agencies.

Speaker 6: It's clear Rumble has entered a stage of diversification that caters to a diverse audience.

Speaker 6: allowing advertisers to reach desired audience segments on our platform.

Speaker 6: Importantly, the attraction of advertising agencies allows us to slow down our spending without affecting our revenue potential.

How's us to slow down our spending without affecting our revenue potential.

Speaker 6: If there is one takeaway from our third quarter, it is that Rumble is nearing the end of the building phase and is on schedule to scale monetization in 2024. We raised the necessary funds just over a year ago, have been diligent and strategic in our spending, and now have the creators and audience necessary to attract the attention of advertisers.

There is one takeaway from our third quarter is that Rumble is nearing the end of the buildings and is on schedule to scale monetization in 2024, we raised the necessary funds just over a year ago have been diligent and strategic in our spending and now have the creators and audience necessary to attract the attention of advertisers to date.

Speaker 6: To date, we've provided a small number of our creators with guaranteed minimum earnings because our advertising ecosystem did not match that of competing platforms.

We provided a small number of our creators with guaranteed minimum earnings because of our adverts because our advertising ecosystem did not match that of competing platforms as our monetization engines rack and rumbled studio come online creators will begin to see their earning opportunities significantly increase this development enables us to pull back.

Speaker 6: As our monetization engines, Rack and Rumble Studio, come online, creators will begin to see their earning opportunities significantly increase. This development enables us to pull back on our spending to acquire content, while maintaining our creator and audience base. To crystallize this a bit further, by the end of 2024, we anticipate increased ad-driven monetization will allow us to attract new and retain existing creators, with reduced reliance on guaranteed payment.

Back on our spending to acquire content, while maintaining our creator and audience base to crystallize. This a bit further by the end of 2024, we anticipate increased AD driven monetization will allow us to attract new and retain existing creators with reduced reliance on guaranteed payments with the app.

Speaker 6: With the aforementioned in place, we expect our guaranteed creator commitments to significantly decrease by the end of 2024, while our revenue engines come online, moving us materially towards break-even in 2025. The third quarter also proves that we have created a community for everyone. We have proven that Rumble is the preeminent neutral platform, and the opportunity that we provide has never been more attractive.

Mentioned in place, we expect our guaranteed greater commitments to significantly decrease by the end of 2024, while our revenue engines come online moving us materially towards breakeven in 2025. The third quarter also proves that we have created a community for everyone. We have proven that Rumble is.

The preeminent neutral platform and the opportunity that we provide has never been more attractive with that I'll turn the call over to our CFO Brendan Alexandra. Thanks, Chris I'll now take you through our Q3 financials at a very high level before turning the call over to the operator for Q&A, we reported revenues of eight.

Speaker 6: With that, I'll turn the call over to our CFO , Brandon Alexandrov.

Speaker 4: Thanks, Chris. I'll now take you through our Q3 financials at a very high level before turning the call over to the operator for Q&A. We reported revenues of $18 million for the quarter. This compares to $11 million for Q3 2022. The growth was primarily driven by a $2.3 million increase in advertising revenue and a $4.7 million increase in licensing and other revenue.

$18 million for the quarter. This compares to $11 million for Q3 2022. The growth was primarily driven by a $2 3 million increase in advertising revenue and a $4 7 million increase in licensing and other revenue.

Speaker 4: The increase in advertising revenue was driven by an increase in consumption, as well as the introduction of new advertising solutions for creators, publishers, and advertisers, including host-read advertising and RAC, both of which we started to build and test in the second half of 2022.

The increase in advertising revenue was driven by an increase in consumption as well as the introduction of new advertising solutions for creators publishers and advertisers, including wholesale advertising and rack both of which we start to build and test in the second half of 2022.

Speaker 4: While our revenue remains relatively small and subject to variability quarter over quarter, the progress made in attracting and retaining our audience, as well as the development of creator monetization tools, are proving out our overall business model and potential of the company.

While our revenue remains relatively small and subject to variability quarter over quarter, the progress made in attracting and retaining our audience as well as the development of creator monetization tools are proving out our overall business model and potential of the company.

Speaker 4: Our cost of services include all programming and content costs related to payments to content providers, including amounts paid to creators based on revenues generated, as well as additional costs related to incentivizing top creators to promote and join our platform.

Our cost of services include our programming and content costs related to payments to content providers, including amounts paid to creators based on revenues generated as well as additional costs related to incentivising top creators to promote and join our platform.

Speaker 4: Cost of services also includes third-party service provider costs, such as data center and networking, staffing costs directly related to professional service fees, and costs paid to publishers.

Cost of service was also includes third party service provider cost such as data center and networking staffing costs directly related to professional service fees and cost paid to publishers.

Speaker 4: Cost of services for the quarter were $39.8 million compared to $12.3 million in Q3 a year ago. The increase was due to an increase in programming and content costs of $26.1 million, hosting expenses of $700,000, and other service costs of $700,000.

Cost of services for the quarter were $39 8 million compared to $12 3 million in Q3, a year ago. The increase was due to an increase in programming and content costs of $26 1 million hosting expenses of 700000 and other service costs of 700000.

Speaker 4: Moving to our cash position, we ended the quarter with approximately $267 million in cash, cash equivalents, and marketable securities, compared to $338.3 million as of December 31st, 2022.

Moving to our cash position, we ended the quarter with approximately $267 million in cash cash equivalents and marketable securities compared to $338 3 million as of December 31, 2022.

Speaker 4: To date, as intended, a large portion of our cash used has been to acquire content by providing economic incentives, including minimum guaranteed earnings, to a limited number of content creators, including sports leagues, which we have not yet begun to monetize meaningfully. This content acquisition strategy has allowed us to enter key content verticals and secure top content creators in those verticals before we have full monetization capabilities in place.

To date as intended a large portion of our cash use has been to acquire content by providing economic incentives, including a minimum guaranteed earnings through a limited number of content creators, including sports leagues, which we have not yet begun to monetize monetize meaningfully. This content acquisition strategy has allowed us to enter key content verticals.

<unk> and secure a top content creators in those verticals before we have full monetization capabilities in place.

Speaker 4: And as Chris mentioned, we anticipate increased ad-driven monetization will allow us to attract new and retain existing creators with reduced reliance on guaranteed payments. As a result, we expect our guaranteed creator commitments to significantly decrease by the end of 2024 while our revenue engines come online, moving us materially towards breakeven in 2025.

And as Chris mentioned, we anticipate increased AD driven monetization will allow us to attract new and retain existing creators with reduced reliance on guaranteed payments as a result, we expect our guaranteed creator commitments to significantly decrease by the end of 2024, while our revenue engines come online moving us materially towards breakeven.

In 2025.

Speaker 4: That concludes my prepared remarks. Before I turn the call over to the operator, I invite you all to join Chris this evening at 7 p.m. Eastern time in an exclusive post-earnings interview with Matt Kors to be streamed live on the Matt Kors Rumble channel. I will now turn the call over to the operator to open up the line for questions from our covering analysts.

That concludes my prepared remarks before I turn the call over to the operator I invite you all to join Chris. This evening at seven PM Eastern time, and an exclusive post earnings interview with Mac cores to be streamed live on the Mac quarters Rumbled channel I will now turn the call over to the operator to open up the line for questions from our covering analysts.

Speaker 1: Thank you. Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star and 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Thank you.

Ladies and gentlemen, we will now be conducting a question and answer session.

I would like to ask a question. Please press star and one on your telephone keypad.

Omission tone will indicate your line is in the question queue.

Speaker 1: You may press star and 2 if you would like to remove your question from

You May press Star and two if you would like to remove your question from the queue.

Speaker 1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button.

All participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker 1: Ladies and gentlemen, we will wait for a moment while we poll for questions.

Ladies and gentlemen, we will wait for a moment, while we poll for questions.

Speaker 1: Our first question comes from Tom Forte with DA Davidson, please go ahead.

Our first question comes from Tom Forte with D. A Davidson. Please go ahead.

Speaker 5: Great, thanks. So I had several questions. I wanted to ask two and then get back in the queue and then ask the remainder. So first off, can you provide your current thoughts on your ability to track influencers from other platforms, including Twitch? It looks like news came out today that Amazon had more layoffs in their gaming space, only this time it was not Twitch.

Great. Thanks, So I had several questions I wanted to ask two and then get back in the queue and then ask the remainder so.

First off can you provide your current thoughts on your ability to track Influencers from other platforms, including Twitch. It looks like news came out today that Amazon had more layoffs in the gaming space only this time it was not twitch that specifically.

My first question.

Yes, so we've had a.

Speaker 6: Yes, so we've had a lot of success with attracting creators from Twitch as of, I would say, earlier Q2 of this year, and we believe that momentum should be able to continue going into next year as these other platforms have exorbitant fees.

A lot of success with attracting creators from Twitch as I would say earlier Q2 of this year and we believe that momentum should should be able to continue going into next year as these other platforms exorbitant fees.

Speaker 3: with craters. So for example, I believe the red shares

With greater so for example, I believe the Rev shares on the on switch are are very high and.

Speaker 6: on Twitch are very high in favor of Twitch, whereas a platform like Rumble is offering much more compelling rev shares, which should help attract that creator base over to our platform.

In favor of Twitch.

As a platform like Rumble is offering much more compelling Rev shares, which should help attract.

That creator base over to our platform.

Speaker 5: Great. And then for my second question, and I'll get back in the queue, it looks like you've been the exclusive live streamer for numerous Republican presidential debates with more coming up. Have these been needle movers as far as engagement goes?

Great and then for my second question and I'll get back in the queue now it looks like you've been the exclusive live stream or for numerous Republican presidential debates with more coming up have these been needle movers as far as engagement goes.

Speaker 6: Absolutely. When it comes to the RNC, the Republican primary debates, the first debate in particular that I can remember had over 700, across the platform at a single point in time with the GOP being the largest stream, we had over 700,000 concurrent streamers, watchers,

Absolutely.

When it when it comes to the.

The RMC the Republican primary debates the first debate in particular that I can remember had over 700 across the platform at a single point in time with the GOP being the largest stream we had over 700000 concurrent streamers watchers.

Speaker 6: on the platform according to stream charts, and I believe the GOP was the number one stream in the United States at the time that it happened.

On the platform. According the stream chart and I believe the GOP was the number one stream in the United States at the time that it happened.

Speaker 3: So, we've seen some huge success on the debates and pushing our platform as well to really high, to very high marks.

So we've seen some huge success on the on the debate and.

Pushing our platform as well to really high.

Very high marks.

Great I'll get back into queue for more questions.

Thank you.

Speaker 7: Our next question comes from the line of Jason Helchfield with Oppenheimer and Company. Please go ahead. Thanks. I'll ask a few. But first I want to say, John , I watched the recent GOP debate.

Our next question comes from the line of Jason <unk> with Oppenheimer and company. Please go ahead.

So I'll ask a few but first of all I think I watched the recent GOP.

On my phone on cellular on your App.

It was well done so so kudos to that.

Speaker 7: So, I guess we have a lot of stuff to unpack, so I'll ask a few.

So I guess, we have a lot of stuff to unpack for you and then we'll keep taken turns so.

Speaker 7: So USMAU was up nicely quarter to quarter, but minutes, kind of per unit.

U S M a.

Nicely quarter to quarter, but minutes per user were down.

Speaker 7: I don't know if there's any general thoughts behind that.

Any general thoughts behind that.

Speaker 7: content in the quarter, so that's question one. So I'll just go on.

As far as the mix of content in the quarter. That's question one I'll just go one at a time.

Speaker 6: Yeah, so when it comes to the engagement metric, there's a couple things there. First off is the

Yeah, so when it comes to the engagement metric.

Theres a couple of things there first off is the is that we have in the summer. When for example, we had the GOP debate in the middle of the summer a lot of creators not not only in the summer or taking time off so youre seeing a lot of like for example, Steven Crowder is not doing his stream all in July and these.

Speaker 3: is that in the summer, for example, we had the GOP debate in the middle of the summer. A lot of creators, not only in the summer, are taking time off. So you're seeing a lot of, for example, Steven Crowder is not doing his stream all in July . And these long streams obviously add to a lot of the watch time, not him particularly, but a lot of different creators that don't create content over the summer. We also have moved our, we're slowly moving over our CDN onto our own CDN. And from preliminary results that we're seeing is that our CDN is recording, it seems to be recording less bandwidth.

Long streams, obviously add to a lot of the watch time, not him, particularly but a lot of different greater that don't create content over the summer. We also have moved on.

But we're slowly moving over our CDN onto our own CDN and from preliminary results that we're seeing is that our CDN is recording it seems to have.

Be recording less bandwidth than third party CDN is that we.

Speaker 7: than the third-party CDNs that we used. Got it. So maybe MAU will be a better indicator than NMINUTE, at least from a training standpoint.

We used.

Got it so maybe you'll be a better indicator than minutes at least from a training standpoint.

And then on AD monetization.

I mean is rack behind schedule I mean give.

Given the.

The Mou being up sequentially.

Rising to see kind of particularly like the U S revenue or just the advertising revenue kind of down sequentially, though.

Speaker 7: revenue or just the advertising revenue kind of down sequentially.

Speaker 7: I mean, maybe just like unpack that, I mean, sales and marketing was down, so was there like less manual selling effort maybe ahead of RAC, just kind of why was revenue down sequentially? Because I just...

I mean, maybe if I unpack that sales and marketing with downs and with less manual selling ever maybe ahead of reactive kind of YY was revenue down sequentially.

The third quarter.

Seasonally smaller.

Smaller quarters in second quarter, and only one yes, no absolutely. So when it comes to revenue what we said in the second quarter is that.

Speaker 6: Yeah, no, absolutely. So when it comes to revenue, what we said in the second quarter is that a lot of our revenue stems from the testing that we've done with the cohort of small cohort of creators on the sponsorship side. And we haven't at this point, fully scaled rack on the on the programmatic side. So there's two sides to the business that rumble when it comes to the advertising. One is the sponsorship rack rack sponsorships, and the other one's going to be rack programmatic.

A lot of our revenue stems from the testing that we've done with the cohort a small cohort of creators on on the sponsorship side.

And we haven't at this point fully scaled rack on the on the programmatic side. So there's two sides of the business that Rumble when it comes to the advertising one is the sponsorship rack sponsorships and the other one is going to be rack programmatic.

Speaker 6: And right now, we're on schedule to be launching programmatic within our app this quarter, hopefully in a few weeks to like two to four weeks time. And that will be a big moment for us when we start introducing pre-rolls within app and should have an effect on revenue going into 2024.

And right now we're on schedule to be launching programmatic within our App this quarter.

<unk> in a few weeks to like two to four weeks time and that will be a big moment for us when we start introducing clear roles within App and should have.

On revenue going into 2024, and then the second component is because we're only testing a small cohort of creators on the sponsorship side, we need to integrate that into Rumble studio and rack and deliver that early in 2024. So that people can get those sponsorships on scale with while theyre going live on streaming so I wouldn't say rack.

Behind in fact, I think we're.

Speaker 7: making history in the sense that we're building these tools in the last year that companies like Google bought DoubleClick for billions of dollars and built out their tools over a decade. We're trying to compress that all in the last 365 days. So I think we're doing extremely well on that. Having Rack where it is right now and being ready to introduce pre-rolls for 2024 in our apps and OTT is a big milestone for us and we're on target to be doing that. And then as we introduce Rack into Rumble Studio, which just came out into beta in the last couple of weeks, we still have to build the sponsorship part into the studio. I think we're doing quite well on building that out. So just to follow up and not to put words in your mouth, so was basically the sequential decline in advertising revenue more a function of that you had advertisers who tested the platform in the second quarter but did not come in in the third quarter or like just for you kind of shifting resources ahead of Rack and Rumble Studio launch.

Making history in the sense that we're building these tools in the last year that companies like Google took they bought doubleclick for billions of dollars and built out their tools over like a decade, we're trying to compress that all in the last 365 days. So I think we're doing extremely well on on that having rack, where it is right now.

And being ready to introduce pre rolls through 2024 is in our apps in OTT is a big milestone for us and we're on target to be doing that and then as we introduced rack into Rumble studio, which just came out of beta in the last couple of weeks, we still have to build the sponsorship or into the studio.

We're doing quite well on on building that out.

Speaker 7: Just to follow up and not to put words in your mouth.

Just a follow up and not to put words in your mouth. So.

Speaker 7: Basically, the sequential decline in advertising revenue were a function of that you had advertisers who tested the platform.

Basically the sequential decline in advertising revenue more a function of that you had can be advertisers who are attached to the platform in the second quarter, but did not come in in the third quarter or like just where you're shifting resources ahead of rack and Rumble Rumble studio launch.

Speaker 7: not come in in the third quarter, or like just for you kind of shifting resources.

Speaker 7: Yeah, I don't think it's an advertiser thing. I think it's more of a cohort of creators. If we have a small cohort of creators that we're monetizing very well, and they're taking vacation during the summer, that's gonna have an impact in addition to the fact that we are really trying to get RAC and the sponsorships and RAC and the studio and all that, all our focus is there as well. It's a combination of a few things, and those are at least two things that really contribute to it. And then the last one, I'll jump back in the queue. So gross margin loss was...

I don't think it was.

It's the it's an advertiser thing I think it's more of a cohort of traders that we have a small quarter craters that we're monetizing very well and they are taking vacation during the summer that's going to have an impact. In addition to the fact that we are really trying to get rack in the sponsorships and rack in the studio and all of that all our focus is there as well it's a combination of a few things and those are those are.

At least two things that really contribute to it.

And then last one and I'll jump back in the queue. So gross margin loss.

A lot worse.

<unk> been getting worse right.

Third quarter of incrementally worse gross margin loss.

Speaker 7: I mean, obviously, there's the revenue impact, but was there also kind of a mix on content? You know, just the...

I mean, obviously there is a revenue impact but was there also kind of mix on content.

Just the way.

<unk>.

Licensing.

Lee I think has a low mix.

Speaker 7: I mean, mix between revenue, licensing versus advertising or other content, maybe, to help us unpack why the growth.

Mixed between revenue licensing versus advertising or other content, maybe just help us unpack wide growth.

Gross margin loss from a ratio standpoint.

Just kind of so much worse from the second quarter.

Speaker 4: Yeah. Hey, Jason, it's Brandon. So, cost of services, I think, was a little down, relatively flat to the prior quarter. And the biggest chunk of cost of services is the greater incentive costs, right, which are the commitments that we've made and the minimum guarantees that we've been talking about, which will be coming off, as we said, at the end of 2024. That's when they'll be meaningfully coming down.

Yeah, Hey, Jason it's Brandon so cost of services I think was a little down relatively flat to the prior quarter and the biggest chunk of cost of services as the creator incentive costs right, which are the commitments that we've made and the minimum guarantees that we've been talking about which will be coming off as we said at the end of at the end of 2024, that's when they'll be meaningfully come.

Speaker 4: So they'll continue to be in there for the next few quarters, and then that's when they start coming off. So that's just part of the business plan with respect to the commitments on the content acquisition strategy.

Down so they'll continue to be in there.

For the next few quarters and then that's when they start coming off so that's that's.

That's just part of the business plan with respect to the commitments on the on the content acquisition strategy.

Thanks, I'll jump back in the queue.

Speaker 1: Thank you. Our next question is from Tom Forte with DA Davidson. Please go ahead.

Thank you.

Next question is from Tom Forte with D. A Davidson. Please go ahead.

Speaker 5: Great. So, three follow-ups for me, and then I'll stop. So, one at a time, can you discuss what artificial intelligence means to Rumble and to what extent you're able to use the technology to enhance content moderation on the platform?

Great. So three follow ups for me and then I'll stop.

So one at a time.

Can you discuss what artificial intelligence means to Rumble and to what extent you are able to use the technology to enhance content moderation Oh, sorry moderation on the platform.

Speaker 3: Yes. Thanks, Tom. So, when it comes to AI and moderation, we've opted to stay away from that entirely. I think those are the mistakes that the larger platforms have done, is relied on a lot of technology to flag and remove content, whereas we want to be a little bit more particular about that and have real human eyes on something and not rely on something that hasn't proved out to be 100%.

Yes, thanks, Tom So when it comes to AI and moderation, we've opted to stay away from that entirely.

I think those are the mistakes that the larger platforms have done has relied on a lot of technology to slag and remove content, whereas.

We want to be a little bit more particular about that and have real human eyes on something and not rely on something that isn't hasn't hasnt proved out to be.

100%.

Speaker 3: So, when it comes to AI and the moderation side, we haven't implemented anything of that sort and we have no current plans to implement anything of that sort.

Accurate so when it comes to AI and the moderation side, we haven't implemented anything of that sort and we have no current plans to implement anything of that sort.

Speaker 5: All right, and then second, this is very philosophical, but I like to get philosophical with you, Chris. All right, so on AI, it seems to me there's a real risk that given the parties involved, advancement in AI is going to increase the excess influence on consumers from Big Tech, Amazon, Apple, Google, MetaPlatforms, Microsoft. So I'd appreciate your thoughts on that as a long-term participant. And then also, what can you do, if anything, to disrupt that?

Alright, and then second this is Greg.

Philosophical, but I'd like to get philosophical view, Chris Alright.

It seems to me there is a real risk that given the parties involved advancement in AI is going to increase the excess influence on consumers from Big Tech Amazon Apple Google meta platforms Microsoft.

No.

I would appreciate your thoughts on that as long term participant and then also what can you do if anything to disrupt that.

Yes, so at this point.

Speaker 6: When looking at AI and artificial intelligence on the Rumble side, obviously video is a massive contributor to AI models. It's not something that we're doing and it's not something that we're in. Additionally,

When when looking at AI and artificial official intelligence on the Rumble side the.

Obviously video is a massive contributor to AI models, it's not something that we're doing and it's not something that we're in.

Additionally.

Sure.

Speaker 6: I think a first step for Rumble when it comes to any sort of machine learning or any sort of recommendations will be in terms of like making sure that we deliver content that people want after a video is done. We're not going to be adopting a new feed based on AI, not anytime soon and, you know, for a lot of various reasons.

I think the first step for Rumble when it comes to any sort of machine learning or any sort of recommendations will be in terms of like making sure that we deliver content that people want.

After a video is done we're not going to be adopting a new feed based on AI not anytime soon.

For a lot of various reasons, but when it comes to surfacing content and helping drive launch time I think there is things that we could do on the on the recommendation side, but I want to be very careful on how we do that and what we do just based on what we currently see in what our audience really wants I want to make sure we deliver what they want.

Speaker 6: But when it comes to surfacing content and helping drive watch time.

Speaker 6: I think there's things that we could do on the recommendation side, but I want to be very careful on how we do that and what we do just based on what we currently see and what our audience really wants. I want to make sure we deliver what they want.

Speaker 3: more than what other companies are doing.

More than what.

Other companies are doing.

Speaker 5: Excellent. Last question to take on my question. So can you give your current thoughts on the regulatory efforts across the globe when it comes to Internet broadly and free speech more specifically, including those in Canada?

Excellent last question's actually took all my questions. So can you give your current thoughts on the regulatory efforts across the globe. When it comes to the Internet broadly in free speech more specifically, including those in Canada.

Yeah.

Speaker 6: Yeah, so when it comes to, obviously, in the United States, there, the First Amendment is, is the most important is, is there. So it's, it's critically important to us. And obviously, you know, puts a really big safeguard.

Yes.

When it comes to obviously in the United States. The first amendment.

As the most important.

Is there so it's critically important to us and obviously.

Puts a really big safeguard for what we do when it comes to other jurisdictions, like France, or China or North Korea.

Speaker 6: for what we do. When it comes to other jurisdictions like France, or China, or North Korea, it's obviously murky. Those aren't markets that we're participating in. And when it comes to Canada, obviously, we're hoping that things will change.

It's it's obviously mercury those arent markets that we're participating in it and when it comes to Canada, obviously, we're hoping that things will change.

Speaker 6: In Canada, we're not really sure on how the laws in Canada will play out, so it's still a wait-and-see moment for us in terms of how they will enforce and what they plan to enforce and what they plan to do. It's a very early stage in Canada and with many other markets.

In Canada, we're not really sure on how the laws in Canada will play out so it's still a wait and see moment for us in terms of how they they will enforce and what they plan to enforce and what they plan to do it is very early stage.

And Canada along.

With many other markets.

Speaker 3: But when it comes to the U.S., that's kind of where our bread and butter is at this moment. And we've challenged things, like in the New York State, when they tried to push back on the First Amendment. And we've been very successful there in overturning that, and obviously now it's an appeal. And we'll continue to push forward on that in the United States, alongside the First Amendment.

But when it comes to the U S.

Kind of where our bread and butter is at this moment and we've challenged things in like in the New York State when they try to push back on the first amendment and we have successfully we've been very successful there.

In an overturning that and obviously now it's an appeal.

We will continue to it will continue to.

Push forward on that in the United States alongside the first amendment.

Great. Thanks, that's no more questions.

Thank you.

Speaker 1: Our next question is from the line of Jason Helfstein with Oppenheimer and Company. Please go ahead. Hi.

Our next question is from the line of Jason <unk> with Oppenheimer and company. Please go ahead.

So just a few more so can you just talk about <unk>.

Speaker 9: So, can you talk about what drove, I think...

What drove it.

<unk>.

No I'm good on that question. Okay. So the next question how should we think about Rahmbo cloud impact on either gross profit or EBITDA over the next 12 months I'm just like broadly.

Speaker 9: So the next question, how should we think about Rumble Cloud Impact on either gross profit or EBITDA over the next 12 months? I mean, just like broadly, I mean, is this entirely just selling

It is entirely.

Selling excess capacity are they going to be additional costs.

Got it.

So we like accretive from a financial standpoint.

That one and then I'll just do one more after that.

Speaker 6: Yeah, we're not providing any guidance on cloud at this point.

Hi, Yes, we're not providing any guidance on the on cloud at this point.

Okay.

Speaker 9: Okay, and then your comment about Eva Dobry.

And then your comment about EBITDA breakeven at 25 is that for the full year of 25 or just like at a point in 'twenty five.

Speaker 9: 25 is that for the full year of 25 or just like at a point?

Alright.

Speaker 4: Just to clarify, so we haven't defined what we mean by breakeven at this time. It's a, you know, there's disclosure requirements around that, surrounding non-GAP metrics. And so, you know, we'll develop the appropriate set of metrics around this and communicate that during 2024. But at this time, we haven't defined it, nor are we giving guidance on the timing of that specifically.

To clarify so we haven't define what we mean by breakeven at this time.

There is disclosure requirements around that surrounding non-GAAP metrics and so.

We will develop the <unk>.

Appropriate set of metrics around this and communicate that during 2024.

At this time, we haven't defined it nor are we giving guidance on the timing of investments.

So what was that comment though.

Specifically our goal is to be breakeven in 'twenty five.

Speaker 9: No, I think we said we're heading towards breakeven in 2025. As these expenses that I was mentioning earlier, as these greater commitment expenses start coming off and revenue starts to scale, that's when we start heading towards the breakeven timeframe, which we expect to happen in 2025. So basically, you mean you're...

I think we said we're headed we're heading towards breakeven in 2025 as these expenses that I was mentioning earlier as these greater commitment expenses start coming off and revenue starts to scale. That's when we start heading towards breakeven.

Im frame, which we expect to happen in 2025.

Basically you're trying to say that.

We will see an improvement.

Speaker 9: in 2025, like as a marginal level.

In 2025.

A marginal level, but there is no commitment absolute levels at this point.

Speaker 4: We expect we will be breakeven. We'll communicate more about what that means in 2024.

Yeah.

Sure.

We expect we will be breakeven, we will communicate more about what that means in 2024.

Okay. That's it for me thank you.

Yeah.

Thank you.

Speaker 1: As there are no further questions at this time, the conference of Rumble, Inc. has now concluded. Thank you for your participation. You may now disconnect your lines.

As there are no further questions at this time the conference of Rambus, Inc. Has now concluded. Thank you for your participation you may now disconnect your lines.